ECONOMYNEXT - Hikkaduwa Beach Resorts Plc, a unit of Sri Lanka's Citrus Leisure, said it was seeking shareholder approval to abandon plans to develop an Ayurveda Resort and Spa in Kalpitiya and will use 283.5 million rupees from anpublic offering to settle debts.
A feasibility study on the proposed resort found that Kalpitiya was not ideal location for the project after raising funds from a public offer, the company said.
"The assessment was that Kalpitiya will not be an attractive location to build a star class resort in the foreseeable future due to several factors including the unavailability of required infrastructure facilities," the company said in a stock exchange filing.
Hikkaduwa Beach Resorts Plc will now dispose its lands and use the funds to develop other projects.
In 2017, the company, a unit of Sri Lanka's Citrus Leisure, absorbed three other listed hotel companies of the group as part of a restructure: Waskaduwa Beach Resort Plc, Kalpitiya Beach Resort Plc and Passikudah Beach Resort Plc.
Hikkaduwa Beach was trading 20 cents lower at 7.10 rupees Friday. (COLOMBO, 11 April, 2018)